Bonus Shares

Bonus Shares are

• Fully paid shares issued by the company.

• Shares issued to the existing shareholders in proportion to existing shares they hold

• Shares issued free of cost

• All of the above

Issue of Bonus Shares is also known as

• Bonus Issue

• Capitalization of undistributed profit.

• Both of the above.

Bonus issue could not be made until the expiry of ___ from any public or right issue.

• 6 months

• 15 months

• 24 months

• 12 months

There is restriction as to the time of one bonus issue and another.

• True

• False

The bonus issue must be made within a period of 6 months from the date of approval of the Government

• True

• False

The company once announces , can change the decision of issuing Bonus Shares.

• True

• False

The partly paid up shareholders, are not offered bonus Shares.

• True

• False

The bonus issue is made out of free reserves built out of the genuine profits or shares premium collected in case only.

• True

• False

AOA must authorise the issue of bonus shares.

• True

• False

The reserve created by revaluation of fixed assets or without accrual of case resource are not capitalised.

• True

• False